In a post via X on Friday, the company said users can transition to Microsoft Teams to retain access to their chats and contacts.
“Starting in May 2025, Skype will no longer be available. Over the coming days, you can sign in to Microsoft Teams for Free with your Skype account to stay connected with all your chats and contacts. Thank you for being part of Skype,” the post reads.
Skype was launched in August 2003 by Niklas Zennström and Janus Friis.
The platform quickly gained global traction, reaching 54 million registered users by 2005.
That same year, eBay acquired Skype for $2.6 billion but later sold a majority stake to an investor group led by Silver Lake, a private equity firm, in 2009.
Microsoft took full ownership in 2011, integrating Skype into its ecosystem.
However, the platform struggled to maintain dominance in the face of competition from Zoom, WhatsApp, and even Microsoft’s Teams.
Explaining the decision, Microsoft said the move aligns with its goal of streamlining communication tools.
“The way we communicate has evolved significantly over the years. From instant messaging to video calls, technology has continuously transformed how we connect,” Microsoft said.
“To streamline our free consumer communications offerings so we can more easily adapt to customer needs, we will be retiring Skype in May 2025 to focus on Microsoft Teams (free), our modern communications and collaboration hub.”
The tech giant also confirmed that it will no longer offer paid Skype features to new customers, including Skype credits and phone call subscriptions.
Microsoft added that existing paid users can continue their subscriptions until their next renewal period, while those with credits will have until May 2025 to use their balance.
Microsoft has decided to discontinue Skype for several reasons:
- Focus on Microsoft Teams: Microsoft aims to streamline its communication tools and focus on Microsoft Teams, which offers a more modern and integrated communication and collaboration experience2.
- Declining User Base: Skype’s user base has significantly declined over the years. At its peak, Skype had around 300 million monthly users, but this number dropped to 36 million by 2023.
- Technological Evolution: Skype’s underlying technology was not optimized for the smartphone era, making it less competitive compared to newer platforms like Zoom and Slack.
- Integration with Office Apps: Microsoft Teams is integrated with Office apps, making it more attractive to corporate users, a demographic that was once a major user base for Skype.
- Enhanced Features: Teams offers enhanced features such as hosting meetings, managing calendars, and building and joining communities for free, which are not available in Skype.
Microsoft has assured users that they can transition to Microsoft Teams for free and retain access to their chats and contacts